Is Danaher Corp. overvalued or undervalued?

As of 25 April 2025, Danaher Corp. has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a P/E ratio of 40, an EV to EBITDA of 24.40, and a Price to Book Value of 3.30. In comparison to peers, Abbott Laboratories has a more attractive P/E of 19.12, while Thermo Fisher Scientific, Inc. is also attractive with an EV to EBITDA of 17.94.
Despite the recent stock performance showing a decline of 22.99% over the past year compared to a 10.26% gain in the S&P 500, the elevated valuation metrics suggest that Danaher Corp. may not justify its current price levels. The company's return on equity (ROE) stands at 8.34%, which further indicates that its profitability may not be sufficient to support its high valuation in the current market environment.